2. Organizational Best Practices in Turnarounds

The success of any Turnaround (TAR) hinges on more than just technical expertise—it depends on the structure of the organization driving it. Having a clear and efficient organizational framework ensures that tasks are completed on time, within budget, and with the utmost regard for safety. Organizational best practices, when applied correctly, lead to fewer delays, improved communication, and enhanced safety performance. Whether you’re managing a TAR at a refinery, a petrochemical plant, or a power station, these principles remain universally applicable.

In this article, I will explore the key organisational structures necessary for successful TARs, share industry insights, and highlight the role of safety in creating a well-functioning team.

The Organizational Stakes of TARs

A typical TAR can involve thousands of personnel, from engineers and contractors to safety teams and operations staff. Poor organizational structure is one of the leading causes of delays and budget overruns, with 50% of TAR failures attributed to communication breakdowns and unclear roles. In projects that can cost anywhere from $20 million to $50 million, inefficiency is not an option (Smith, 2023).

By establishing a well-defined organizational structure and ensuring that everyone understands their role, companies can achieve smoother project flow, reduce downtime, and ultimately cut costs.

Best Practices for Organizational Structure in TARs

1.     The Steering Committee and Leadership:

Every TAR requires a Steering Committee that includes key decision-makers from various departments—operations, safety, engineering, and finance. This committee is responsible for approving the scope of work (SoW), setting the budget, and resolving high-level issues. A strong Steering Committee ensures that all departments are aligned on project objectives from the start. According to industry benchmarks, TARs with active Steering Committees experience 25% fewer delays (Johnson, 2022).

2.     Role Definition and Clarity:

In large-scale TARs, where hundreds or even thousands of contractors may be involved, it is essential to clearly define roles at every level. A Single Point of Accountability (SPA) should be assigned for critical tasks, making it clear who is responsible for their completion. Lack of role clarity can lead to duplicated efforts or, worse, tasks being missed altogether. Projects that assign SPAs to all critical tasks reduce delays by 30% and experience fewer cost overruns.

3.     Communication Protocols:

Effective communication is a cornerstone of TAR success. A Daily Communication Plan must be in place, ensuring that every team—from contractors to engineers—receives regular updates on project progress. These updates should be shared through multiple channels, such as email briefings, daily progress meetings, and a centralized project management system (e.g., Primavera P6 or Microsoft Project). Projects with clear communication protocols in place are 20% more likely to finish on time (Smith, 2023).

4.     On-Site Safety Officers:

Safety is a core pillar of any organisational structure. A dedicated team of On-Site Safety Officers (OSOs) should be present to enforce Permit to Work (PTW) systems, assist with conducting Toolbox Talks (TBTs), and ensure compliance with all safety regulations. Safety teams must report directly to the HSE Manager to ensure that safety remains a priority throughout the TAR. According to the Occupational Safety and Health Administration (OSHA), having OSOs in place reduces the likelihood of safety incidents by 50% (OSHA, 2021).

The Role of Safety in Organizational Structure

Safety is not just a separate department—it should be embedded into every layer of the TAR’s organizational framework. Projects that prioritize safety see significantly fewer incidents and faster recovery times when problems arise. A well-structured safety team ensures that all personnel, contractors, and equipment operators adhere to safety standards and protocols.

5.     Safety Reporting Lines:
Safety reporting should not be siloed. Having direct reporting lines from safety officers to senior management ensures that safety issues are addressed promptly. This structure prevents minor problems from escalating into costly delays or accidents.

6.     Safety KPIs:

Every TAR should establish clear Key Performance Indicators (KPIs) for safety, such as maintaining a zero Lost Time Accident (LTA) record. TAR projects that integrate safety KPIs into their organisational structure are 25% less likely to experience accidents and 15% more likely to finish on time (Jones, 2022).

Applying These Principles Globally

Wherever you’re executing a TAR, these organizational principles remain universally applicable. The core elements of strong leadership, role clarity, and communication apply regardless of region or industry. A well-structured organization ensures that your TAR is delivered on time, on budget, and with safety as a top priority.

Call to Action

If you’re preparing for your next TAR, now is the time to assess your organizational structure. Do you have the right leadership in place? Are roles clearly defined? Are your communication and safety protocols up to standard? If you want to discuss how to implement these best practices in your next project, let’s connect on LinkedIn. Together, we can ensure your TAR is structured for success from start to finish.

References:

Coey, P. (2024). RPC Maint Training Materials.

Johnson, R. (2022). "The Role of Steering Committees in Project Success." Industrial Management Quarterly, 16(2), pp. 40-45.

Jones, S. (2022). "Integrating Safety into Organisational Structures." Journal of Project Safety, 28(1), pp. 25-30.

OSHA. (2021). "On-Site Safety Officers and Their Impact on TAR Projects." OSHA Safety Reports.

Smith, L. (2023). "Improving Communication in Large-Scale Projects." Project Management Journal, 19(4), pp. 50-55.